Because of a Sharp Increase in the Price of Gasoline,the

question 2

Multiple Choice

Because of a sharp increase in the price of gasoline,the demand for Sports Utility vehicles (SUVs) has decreased.So,the high price of gasoline leads to a

• A) leftward shift of the demand curve for SUVs and the supply curve of SUVs.
• B) leftward shift of the demand curve for SUVs and no shift in the supply curve of SUVs.
• C) leftward shift of the demand curve for SUVs and a rightward shift of the supply curve of SUVs.
• D) leftward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.
• E) rightward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.

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Definitions:

Elasticity of Demand

A measure of how the quantity demanded of a good or service changes in response to a change in its price.

Senior-Citizen Discounts

Reduced prices offered to elderly customers, typically those who have reached a specified age, as a benefit or marketing tool.

Cash Rebates

A refund or discount on the purchase price of a product or service, often used as a promotional tactic by retailers and manufacturers.

Software Upgrade

The process of replacing an existing software with a newer or better version to improve functionality or fix issues.